Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 88

According to IIA guidance, which of the following statements is true regarding consulting engagements performed by the internal audit activity?

Answer options

• A. Consulting engagements typically involve four or five parties: the internal audit activity, engagement client, senior management, board, and sometimes the external auditor.
• B. The scope of a consulting engagement is determined by either the engagement supervisor or chief audit executive, and it is finalized prior to beginning fieldwork.
• C. According to the Standards, internal auditors are permitted to carry out certain management functions during a consulting engagement.
• D. A preliminary risk assessment may not be needed for consulting engagements, because the expectations and objectives of the engagement are determined by the engagement client.

Correct answer: B

Explanation

Option B is correct because it accurately reflects that the scope of consulting engagements is determined by the engagement supervisor or chief audit executive and is finalized before fieldwork commences. Option A is incorrect as it does not specify the correct parties involved. Option C is wrong because the Standards prohibit internal auditors from taking on management roles during consulting. Option D is misleading since a preliminary risk assessment can still be beneficial, even if the client's expectations are clear.